The coronavirus crisis has resulted in a drop in the gross domestic product (GDP) by 130 billion Egyptian pounds ($1.8 billion), Minister of Finance Mohamed Maait said on Monday.
The economic growth rate for the financial year 2019/2020 has declined to four percent, down from the targeted six percent, Maait added.
He announced in a statement that tax and non-tax revenues dropped by 124 billion pounds on the back of the COVID-19 pandemic outbreak that affected economic conditions globally.
Maait stressed that his ministry is committed to providing the increases needed in specific sectors’ allocations in FY 2020/2021 budget in implementation of President Abdel Fattah al-Sisi’s directives.
Egypt allocated 63 billion pounds to healthcare sector amid coronavirus
Maait stated that the total additional sums that the government has appropriated for supporting the healthcare sector and other hard-hit sectors and categories amid the current crisis have reached 63 billion pounds out of the 100 billion pounds that Sisi instructed to be allocated for countering the implications of the pandemic.
Additionally, according to Maait, the ministry is committed to provide the monthly allocations needed for commodities and services to meet the citizens’ needs.
Allocations of 11 billion pounds were dedicated to back the healthcare sector to help it take the pre-emptive and precautionary measures against the virus and to disburse the extra bonuses to medical staff and isolation workers, according to Maait.
He added that 400 million pounds are to be allocated annually to finance the appointment of 7,000 research assistants and assistant teachers in medicine faculties at governmental universities, in addition to financing the appointment of 1,200 senior fellows at teaching hospitals affiliated to the health ministry.
He clarified that 16.6 billion pounds were approporiated to increase the infection exposure bonus by 75 percent for medical crews.
Egypt allocated 16.6 billion pounds for the industrial sector during coronavirus crisis
In the industrial sector, Maait unveiled that 16.6 billion pounds were allocated for the sector to counter the COVID-19 implications, adding that 3 billion pounds were provided from April to June to back the Exports Support Fund and to provide an extra liquidity for exporters.
Moreover, 5 billion pounds were allocated to support the tourism and civil aviation sectors, in addition to increasing public investments with 10 billion pounds to maintain the workforce and pay contractors and suppliers’ dues, according to Maait.
Maait declared as well that 6 billion pounds were allocated to the Supply Commodities Authority to purchase 1.6 tonnes of imported wheat, and 3 billion pounds were provided for irregular labour.
He added that 3 billion pounds were allocated for implementing an urgent plan to pave internal roads in governorates and 450 million pounds were provided for the education ministry to finance the pre-emptive measures against the COVID-19.
